Managerial Final

Front 1

Price Discrimination;

Back 1

The ability of consumers to buy a a higher price than the rest of the market.

Front 2

What are the four types of Non uniform pricing;

Back 2

Price Discrimination, Two-part Pricing, bundling, peak load bundling

Front 3

Two part pricing;

Back 3

One fee for the right to buy and another for each additional unit sold.`

Front 4

What are the conditions to Price discriminate;

Back 4

- Must have market power (Monopoly, Oliopoly, Monopolistically competitive)

- Must identify groups with different price sensitivity

- Firm must prevent resale

Front 5

What at the three types of price Discrimination

Back 5

Perfect Price Discrimination

Group P.D

Non Linear P.D

Front 6

How does a firm perfectly price discriminate, and what does price equal;

Back 6

Market power, Prevent resale, Full informatio about willingness to pay, sell each unit, charge reservation Price, Price equals MR

Front 7

Group P.D vs. Perfect Comptition

Back 7

Perfect Comp, Consumer surplus Inc. Causes incease in output

- Competitive Consumer Surplus transferred to firm thus creating dead weight loss due to reduced output

Front 8

Group P.D vs. Single price monopoly

Front 9

Block Pricing;

Back 9

Charging one price for one unit of goods, then charging another for the next, Either inc or dc at your will.

Front 10

Types of Nonlinear Pricing;

Back 10

Between Identical Customers and Different customers.

Front 11

Bundling;

Back 11

Selling multiple goods and services for a single price

Front 12

Two types of Bundling;

Back 12

Pure and Mixed

Front 13

What two types of games can there be

Back 13

Static or dynamic

Front 14

Dominant Strategy

Back 14

One that delivers a high rate of payoff. higher than any other player

Front 15

Prisoner's Delima game;

Back 15

Everyone has a Dominant strategy reducing potential profit

Front 16

Nash Equilibrium;

Back 16

No other player earn a high rate of return by using another strategy,

- Only one combination of strategies in each firms strategy is best

Front 17

What are the Four Modules;

Back 17

Cartel, Stackleberg, Cournot, Bertrand

Front 18

Cournot;

Back 18

Few firms in the market serving many people, Firm believes rival will hole their output constant

Front 19

Stackleberg,

Back 19

Single firm chooses their output before anyone else does in the market.

Front 20

Bertrand,

Back 20

Engage in Price Competition and react to other firms increase and decrease in price.

Front 21

Mixed Strategy Nash Equilibrium,

Back 21

Rule telling a player how to choose between pure strategies

Front 22

Using a pure strategy causes what kind of Nash equilibrium,

Back 22

No NASH!